Procurement and Tendering

Question 1

What is the difference between Procurement and Tendering?

Answer 1

• Procurement is the overall act of obtaining goods and services from external sources. Includes deciding the strategy on how those goods are to be acquired by reviewing the client requirements.
• Tendering is the process of going to the external market to procure those services. So the bidding process and how a contractor is actually appointed.

Question 2

Name some Procurement Options

Answer 2

• Single Stage D&B
• Traditional (Standard)
• Management Contract
• Construction Management

Question 3

Name some Tendering Options

Answer 3

• Open Tender
• Selective Tender
• Single contractor technique (Negotiated)

Question 4

What are the Risks of Two Stage Tendering?

Answer 4

• No contractual mechanism to fix anything other than Programme, Prelims, Overheads, Quality.
• PCSA can be costly
• Turns into a 1 horse race (lack of competition)
• No guarantee the client will get the product quality they desire.

Question 5

What is included in a PQQ

Answer 5

Pre-Qualification Questionnaire, to include the below;
- Technical review
- Company info (capabilities etc)
- Relevant experience
- H&S
- Financial standings

Question 6

What is the typical tendering process?

Answer 6

• PQQ
• Shortlist
• Issue of Tender documentation (ITT, form of tender, spec + drawings, contract & amends, prelims, H&S info, pricing document, pre construction info)
• Mid tender interview
• Opening of tender
• Post tender
• Tender analysis
• Tender recommendation

Question 7

What is the typical tender analysis procedure?

Answer 7

• Align bids with PTE
• Identify pricing errors, Alternative 1 or 2
• Check scope
• Arithmetic check
• Compare programme
• Methodology
• Normalisation between bids